January 23, 2012 – 4:14 pm
Spain's Central Bank expects contraction of 1.5% this year
Spain’s central bank on Monday forecast that the country, which is struggling to slash its deficit and debt, will fall back into recession this year with a contraction of 1.5 percent.
The Bank of Spain said however it expects Spain’s economy to make a modest rebound in 2013 with growth in gross domestic product (GDP) of 0.2 percent. It added that it estimates the economy to have grown by 0.7 percent in 2011.
“In 2011 the modest recovery which the Spanish economy began a year earlier weakened as the eurozone sovereign debt crisis extended to a greater number of countries and financial market tensions strengthened,” it said in a report. Source: Google.com
By Angela
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Posted in Economy, General, Health, Holiday, Property, Tenerife, Things to Do
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Tagged Central bank, debt, Economy, eurozone, GDP, growth, recession, sovereign, Spain|
Spain’s banks will need just 15 billion euros ($A20.69 billion) to clean up their balance sheets, the Central Bank said Thursday, rebuffing predictions by Moody’s which sliced the country’s’ credit rating hours earlier.
The shortfall, which concerns a total of 12 banks, was less than the government’s ceiling of 20 billion euros — and well below the forecast by Moody’s ratings agency of 40-50 billion euros. The Bank of Spain’s report responded to tough government measures unveiled last month that require banks to raise their minimum levels of core capital in a bid to shore up confidence in financial institutions and the wider economy.
Under the new regulations, the banks must raise the proportion of core capital they hold to 8.0 per cent of total assets from the current six per cent, or 10.0 per cent if they are unlisted. Those that have fallen short had to reveal by March 10 how much they need to raise to meet the new requirements.
“Overall, 12 banks must increase their capital, for an amount totalling 15.15 billion,” the Bank of Spain said in a statement.
Source: Sydney Morning Herald
By Angela
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Posted in Economy, Property, Tenerife, Things to Do
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Tagged Bank of Spain, Central bank, credit, Euros, Moody's, rating, Spain, Tenerife|
January 12, 2011 – 2:07 pm
Spain's property prices falling
There are between 700,000 and 1.1 million unsold homes in Spain, a figure that could drag the property prices in the country down further this year, according to the Central Bank in Spain.
A spokesperson from the financial body said property values are likely to continue their downward trend due to tax changes in the country. The banking regulator said: “We will see a process of gradual absorption of accumulated excess supply, which will be slow and mean that housing investment will not contribute to the growth of activity in the near future.”
House values fell by about 13% from the peak seen in the first quarter of 2008, according to government statistics. There was also a decline in new-home construction. Only 137,000 homes were built in the year to September, down from the 2007 peak of 750,000 units.
Perhaps with the fall in the value of the Euro, more overseas purchasers will be tempted back to buy in areas such as Tenerife and The Canary Islands, which have been popular in the past.
By Angela
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Posted in Economy, General, Holiday, Inspirational, Property, Tenerife, Things to Do
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Tagged Canary Islands, Central bank, construction, Euro, homes, housing, Investment, overseas, Property, purchasers, Spain, tax, Tenerife|
August 14, 2009 – 2:51 pm
European property prices set to improve?
Property prices across Europe are expected to fall at a slower rate as the economy starts to level out, according to a report released by Invista Real Estate Investment Management. Conditions for the economy in the eurozone during the first half of this year were the worst since it was formed, although signs are that things are starting to improve.
The European Central Bank reports that more European banks have increased their lending, while the cost of borrowing has fallen sharply. The report says that improving property yields could increase the long-term attractiveness of investing in property.
Tim Francis, director, Continental European strategy and research at Invista, says: “With improved visibility on bottom-of-the-cycle valuations, we are in a better position to judge market pricing against fair value. This will assist in identifying attractive investment opportunities across these markets, some of which are experiencing distressed selling.” We expect deal flow to improve during H2 2009 as the other mature continental European markets including Spain and Tenerife catch up.
By Angela
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Posted in Economy, General, Inspirational, Miscellaneous Articles, Property, Tenerife, Things to Do, Uncategorized
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Tagged attractive, bank, borrowing, Central bank, cost, European, eurozone, investing, Investment, lending, long term, opportunities, prices, Property, Spain, Tenerife, yields|
